\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 415 Zhejiang China Commodities City Group Co.Ltd(600415) )
Event: the company released the annual report of 2021. The total operating revenue was 6.034 billion yuan, 61.95% year-on-year, and the net profit attributable to the parent was 1.334 billion yuan, 43.97% year-on-year. Performance meets the express guidelines.
Comments:
Revenue: the total operating revenue is 6.034 billion yuan / + 61.95%, with a large year-on-year increase, mainly due to the high growth of commodity sales revenue and the steady growth of operating revenue in its core business market. By business: the market operating income is 2.396 billion yuan / + 12.66%, and the refined operation drives the increase of market operating income; The commodity sales revenue is 2.593 billion yuan / + 575.7%, and the love cat business continues to grow rapidly and in large quantities; The hotel service revenue is 128 million yuan / – 14.75%. The local epidemic in Yiwu has a negative impact on hotel occupancy; The exhibition advertising revenue is 120 million / + 24.08%, which has a certain increase compared with 2020. It is still under the influence of planning and is not fully released. It is expected to increase further in 2022.
Gross profit margin: from the cost or gross profit side, the company’s main costs are well controlled, and the segment gross profit margin is expected to increase, but the overall gross profit margin is dragged down by the rapid growth of commodity sales costs. The market operating income and cost were well controlled, and the gross profit margin increased from 57.77% to 63.82%, mainly due to the dilution of operating costs due to the increase of income; The gross profit margin of hotel business is – 4.95%, which is related to high fixed costs, and the amortization expense in 2022 is expected to decrease significantly; The gross profit margin of exhibition advertising is – 2.86%, which has increased year-on-year. With the business planning, the gross profit margin is expected to increase significantly in 2022.
Expenses: in 2021, the expenses were well controlled, and the total expenses of sales, R & D, management and finance increased by 3% year-on-year (due to the great impact of trade income on the company’s income, the rate is not comparable). Among them, the sales cost is 205 million / – 15%, and the company has reduced the advertising cost; The management fee is 454 million / + 20%, with a further increase year-on-year, mainly due to the increase of personnel expenses. We believe that equity incentives have effectively promoted the business growth of the company, and the subsequent growth rate will fall; R & D cost: RMB 100 million / – 44.3%; The financial expense is 180 million yuan, which is basically stable. The company shrinks its cash and interest bearing liabilities at the same time, but the capital cost is low and the impact is limited. It is a normal operation adjustment.
Investment suggestion: Zhejiang China Commodities City Group Co.Ltd(600415) is the leader of the national wholesale market, backed by Yiwu SASAC, leading the digital transformation of market procurement + cross-border e-commerce, and chinagoodsgmv continues to step onto a new level. The signing of cooperation between Yiwu government, COSCO Shipping and prolos marks that Zhejiang China Commodities City Group Co.Ltd(600415) will take substantial steps in promoting the digital upgrading of national trade. We look forward to further cooperation and commercialization in the future. As the operating data in January and February 2022 exceeded expectations and the cost control exceeded the previous expectations, the forecast of net profit attributable to the parent company for 202223 was raised from RMB 1.19 billion and 1.29 billion to RMB 1.69 billion and 2.01 billion, and the profit forecast for 2024 was increased by RMB 2.4 billion. The current valuation is attractive and maintains the buying level.
Risk warning: market operation risk; Risk of insufficient talent reserve; Risk of increased external uncertainty
